In yesterday’s letter, we wrote:

This is what happened. Today’s trading session was marked by significant volatility as we navigated through both bullish and bearish scenarios. We initially held the critical level of 6981 overnight, signaling a bullish sentiment, and even achieved a high of 7007 before the market opened. However, as the trading day commenced, we encountered swift loss of supports-interrupted by nice temporary bounces and then triggering further decline as we lost the key support at 6903. The loss here triggered further selling nearly to our 6855 downside target before defending and reclaiming 6903 to bounce higher into the close. $SPY ( ▼ 0.85% )  $SPX ( ▼ 0.84% )  $ES_F ( 0.0% )  

See how well the levels work?

Now, as we face a substantial move down from the highs - what does this mean for our next steps? Where should we look for potential support, and what levels do we need to reclaim to reinstate our bullish outlook?

More in the trade plan below.

Below, we’ll cover the actionable levels, how we played them today and what they mean for the next session.

Today’s initial defense at 6981 overnight followed by the loss and continuation slide after losing 6903 were prime examples of the supports at work. Always trust the levels.

Now we are sitting in AH right on the key 6910 support level. What does this mean and where do we go from here? Read below for our trade plan which includes actionable support & resistance levels, outlook for the next session and today’s trade recap.

Learn the system to make 1-3 low risk, high reward trades per day using SPY/SPX options.

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Trading Plan

Today’s session was a stark reminder of the market’s volatility, with a massive 1% drop on high volume indicating strong selling pressure. The loss of 6903 triggered a sell-off through key levels of 6891, 6874, and almost to 6855, demonstrating the importance of closely monitoring these critical support zones.

Looking ahead to tomorrow, we have ADP jobs data scheduled before the market opens, followed by Services PMI data post-open. Additionally, at least one FOMC member will be speaking after the close. These events could greatly influence market dynamics, so traders should remain alert and ready to adapt their strategies based on the data releases.

We are receiving some great questions from beginners. This is helping us develop guides for this group as well as the course. More to come but we’ve created a separate channel in the discord just so you can not be shy about bringing those questions to the group. No question is dumb, we grow stronger together!

In fact, we’ve created this single resource as a guide. It is a living document and we will continue updating it. You must be logged into the site to read it:

https://letter.spyoptionsactionablelevels.com/p/strategy-guide-the-basics

As readers know trading after a massive move in either direction is risky.

Trying to predict when trend will break is a fool’s game because the trend can be stronger than you ever realize.

Going with the trend is hard because it has already run so far (or dropped) and move may be close to over.

All you can do is pick your entries carefully and with proper position sizing. Trading out 1-3 DTE or further also helps soften the blow.

Yes it will decrease the amount of profit but will greatly help keep you in a trade long enough to see return.

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